Fifth Circuit Avoidance Actions

On Monday, January 22, 2024, the United States Court of Appeals for the Fifth Circuit entered a ruling in the South Coast Supply Company case allowing a bankrupt debtor to sell preference claims arising under section 547 of the Bankruptcy Code. In doing so, the Fifth Circuit overruled the district court, which followed a long body of case law holding that debtors in possession could not sell avoidance actions. While the Fifth Circuit's decision put to bed a longstanding question of law, it also gives rise to many others.  

Read the full blog here.

Click here to read the Texas Lawyer article.